Whether labor license is required for each contract employing 20 or more workmen or for the contractor employed more than 20 workmen through the various contracts in the same establishment under CLRA?
From India, Faridabad
Labour Law & Hr Consultant
Industrial Relations And Labour Laws
Labour Laws & Ir
Hr Freelancer

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Dear friend,

Though the CLRA Act,1970 comes into play when there is a contract for service accomplished through the engagement of contract labor between the principal employer and the contractor in whatever the place of work of the establishment of the former is situated, always the emphasis on the criteria for applicability are the number of contract labor in the establishment of the principal employer as well as the contractor which stands at a minimum of 20 in case of both. It would automatically imply that the PE is bound to register himself u/s 7 when the total no of contract labor was/is 20 or above notwithstanding the no of contractors and the contractor is bound to take up licence u/s12 when he engages 20 or more no of contract labor for any particular contract work.

In other words, the registration of the PE and the licensing of the contractor is both work-specific and number specific. I would request you to go through sections 1 (4) (b), 7 and 12 of the CLRA Act,1970.

From India, Salem

If contract labour is engaged in the state of Haryana & the appropriate Govt. is also Haryana then RC & Labour Licence is required under CLRA Act in case the employment of Contract Labour is fifty or more.

From India, Delhi

Licence is contractor specific and, therefore, who all are deploying 20 or more persons in your establishment should obtain separate licence under the CLRA. For that you will have to issue separate form VI to each contractor to enable them to take licence.
From India, Kannur

The basis for contract labour license depends on state rules. At the same time for PE it is the total number of contract workers in organization. it differs in case of license to contractor depending on his number.
Basically the underlying principle of activities is as stated by Sri Umakantanji.

From India, Hyderabad

A contractor awarded multiple work orders by the Principal Employer to execute work. Then the contractor has to take separate Licence for each work order if the engagement of labour is equal or more than the limit prescribed by the appropriate Govt. In such cases PE will have to issue separate form VI for each work order to the contractor to enable them to take licence.
From India, Mumbai

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